SINGAPORE (THE BUSINESS TIMES) – Hatten Land on Tuesday (Jan 11) confirmed its first shipment of crypto mining rigs with partner Frontier Digital Management, following previous delays due to supply chain challenges.
The rigs, which will mine Bitcoin, will commence operations this month after delivery and installation, the Malaysian property developer said in a bourse filing before the market opened.
On Dec 30, 2021, Hatten Land said in a reply to queries from the Securities Investors Association (Singapore), or Sias, that the recent tightening of border control measures due to Covid-19 further contributed to the delay in the delivery of the crypto mining rigs, as it resulted in a hold-up in the deployment of technical personnel from Singapore to Malacca.
In its latest filing, the company said it has deployed its technical team to Malacca from Singapore on Jan 5 to join and lead the ground team in Malacca to prepare for the crypto mining rig installation and operation.
The group expects its agreement with Frontier Digital to contribute positively to its net assets and financial performance for the financial year ending Jun 30, 2022.
Both companies will share the net proceeds of the mined cryptocurrencies after deducting related operational and management expenses.
Frontier Digital is a digital asset management technology company that oversees crypto mining assets for institutions and retail investors.
Under the terms of agreement, Frontier will install, operate, manage and maintain at least 1,000 crypto mining machines at properties owned or managed by Hatten Land in Malacca. The rigs will operate 24 hours each day including public holidays and weekends. It will initially mine Bitcoin, with alternative coins to be considered in the future.
The partnership with Frontier Digital brings the total number of crypto mining rigs to be installed at Hatten Land's properties to 3,000.
Shares of Catalist-listed Hatten Land were trading at 4.9 cents, up 0.2 cent or 4.3 per cent, at 9.32am on Tuesday, after the announcement.